MANDATORY MEDIATION AND THE RENEGOTIATION OF MORTGAGE CONTRACTS

• 成果类型: Article
• 署名作者: Collins, J. Michael; Urban, Carly
• 署名单位: University of Wisconsin System; University of Wisconsin Madison; Montana State University System; Montana State University Bozeman
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12106
• 发表日期: 2015
• 页码: 1734-1763
• 关键词: foreclosure; credit; securitization; INFORMATION; homeowners; equity

摘要

Scholars have studied the use of mediation - a third party to facilitate the settlement of a dispute - in a variety of settings. The theoretical literature asserts that mediated negotiation weakly dominates unmediated negotiation, increasing the flow of information between the principal and the agent. This study tests these predictions using a mandatory mediation policy for mortgage contracts in default. Difference-in-differences estimates from three metropolitan statistical areas before and after at least one sub-jurisdiction imposed mandatory mediation show that mediation increased the flow of information, especially for selected sub-groups, as demonstrated by increasing rates of loan contract modifications.